So tested out this pretty incredible bug/exploit in Total War WH 2. The Wood Elves get a tech that makes them immune to all attrition. Well, that includes attrition due to lack of funds. Soooooo, you can go as far in the hole as you want and keep your armies. You just gotta spend all of your money each turn to get anywhere.
@Chris
For those who like Total War games you really should get into Warhammer when number 3 comes out. It's just incredibly, incredibly in-depth. Even if you don't like the fantasy stuff.